Coal at Morupule Coal mine
Continental Coal Limited has admitted that given the timetable for completion of the refinancing or sale of the company’s 74% interest in its South African subsidiary, CCL SA, it is unable to restore its securities to trading on AIM in the immediate short term.
“As the company’s securities have also been suspended from trading on AIM for over six months, under the requirements of Rule 41 of the AIM Rules for Companies Continental’s admission to trading on AIM will be unfortunately cancelled, effective 7am Wednesday, 15 October 2014,” Continental Coal said in a market update.
“Appropriate arrangements will be made for all security holders whose securities are currently traded as Depository Interests on AIM to be registered on the Company’s Australian register of members and for them to be able to trade their securities on the ASX when reinstatement post recapitalisation occurs”.
The move follows the recent announcement dated 10 October advising that it has been presented with offers from third parties interested in acquiring its 74% interest in its South African subsidiary Continental Coal Limited SA (CCL SA).
The company board said it was still finalising legal advice with regards to a scenario whereby an accepted offer is announced and shareholders are then offered the opportunity to have their funds returned from the Rights Issue, remain in a new raising by way of a supplementary prospectus or participate in the new raising given the change in circumstances which some Shareholders may want to participate in as opposed to the previous Rights Issue.
As a consequence of this development, Continental has deferred finalising the completion of any refinancing of the Company through the current Rights Issue process.
Continental said its registrar, Computershare Investor Services Pty Ltd, will write to all Depository Interest holders to advise as to the process for the termination of Depository Interests. In the meantime however, if any of those security holders have any questions they should contact the Company’s Registrar, Computershare Investor Services Pty Ltd.